FoodBlenders’ headquarters is close to the Wellingborough site of flavours giant Frutarom. It has a wide customer base, including British own-label food manufacturers, and is Grade-A certified to British Retail Consortium (BRC) version 6 standard.
The proximity to the Wellingborough plant and FoodBlenders’ complementary line of products would help boost Frutarom’s international savoury sales, it said. The firm, which is based in Israel, said it would seek to expand the product portfolio and target operational and business efficiencies following the move.
FoodBlenders’ product line and technologies complemented the product portfolios and activities of UK-based Savoury Flavours and EAFI, savoury flavour specialists Frutarom also acquired in 2012 and 2011 respectively, it added.
Terms of deal
Under the terms of the deal, Frutarom offered $2.4M (£1.6M), plus an additional estimated sum of $600,000 (£400,000), depending on FoodBlenders’ performance. The transaction was completed upon signing and is being independently financed.
Established in 1998, FoodBlenders develops, manufactures, and markets savoury products, which mainly include spice and seasoning mixes, functional ingredients, marinades and sauces for the food industry, with particular emphasis on convenience foods.
Last year the business posted sales of $3M (£2M), with profit margins similar to those of Frutarom in the same area of activity.
“This is an additional acquisition of activity in Frutarom's core field of business that will enable us to offer our customers a broader set of solutions,” said Ori Yehudai, president and ceo of Frutarom Group. “This acquisition provides further reinforcement of our growing activity in the UK where Frutarom has a leading role in the field of flavours.
“The global savoury flavours market is growing as a result of the rising standard of living and way of life and accompanying changes in consumer habits, which are boosting demand for processed and convenience foods.
“Frutarom considers the field of savoury flavours a vital strategic growth engine and invests heavily in developing unique innovative products with high added-value at its sites throughout the world.”
Yehudai said Frutarom planned to continue investing in expansion in the savoury flavours segment.
The company, which employs 3,000 people globally, aimed to grow internally and through strategic acquisitions, he said, adding: “We are looking to identify and carry out further strategic acquisitions of companies and activities in our fields of operation, placing particular focus on markets and areas of activity exhibiting high rates of growth.”